What volume of loans can the banking system in Figure 13.2 support? If the reserve requirement were 80 percent rather than 75 percent, what would the system's lending capacity be?

Figure 13.2

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Loan $25 Deposit Loan $6.25 Benk Loan $1.56 Initial dopoeit ($100) etc. Bank University Bank Bank 12 W4 Deposit Deposit Excess reserves: $25 Required reserves: $75 Excess reserves: $8.25 Reauired reserves: $18.75 Excess reserves: $0.39 Reauired reserves: $1.17 Еxсевв говоrveв: $1.56 Reauired reserves: S4.69